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Singles swing into retirement with little savings
Maket Watch ^ | April 18, 2013 | Robert Powell

Posted on 04/18/2013 1:32:55 PM PDT by Hojczyk

If you think it’s hard saving for retirement as a couple, trying doing it as a single. According to a study—described by one expert as the most intriguing of 2012—the amount of money singles in their late 60s have saved up for retirement is dramatically less than that of married-couple households.

In fact, the median married household had in 2008 nearly 10 times more saved up for retirement than the median single-person household, $111,600 vs. $12,500. (Savings, for the record, included 401(k)s and IRAs and all taxable savings and investment accounts, but it did not include Social Security, pensions, or housing wealth. And single, at least for the purpose of this research could mean divorced, widowed or unmarried for most/all of their life.)

So what lessons can be drawn from the findings? In general, if you’re single you’ll need to accumulate much more in your nest egg than your married counterparts, according to Utkus.

Plus, you need to make sure you have the right kinds of insurance in place. “You need also to protect against large, unexpected claims,” he wrote. And that means, having disability, life, and health insurance. “The new health care act may help when you lose workplace coverage—but of course you’ll still need to buy a policy,” he wrote.

(Excerpt) Read more at marketwatch.com ...


TOPICS: Business/Economy; Culture/Society; Government
KEYWORDS: babyboomers; retirement; seniors; singles

1 posted on 04/18/2013 1:32:55 PM PDT by Hojczyk
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To: Hojczyk

“So what lessons can be drawn from the findings? In general, if you’re single you’ll need to accumulate much more in your nest egg than your married counterparts...”

Or, just vote for a Democrat.


2 posted on 04/18/2013 1:35:36 PM PDT by BlueStateRightist
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To: Hojczyk

a study—described by one expert as the most intriguing

A fool could figure this out... TWO People working


3 posted on 04/18/2013 1:36:43 PM PDT by Hojczyk
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To: Hojczyk

If a couple has only saved 125K by their late 60’s they must have been living way above their means for a long time


4 posted on 04/18/2013 1:37:05 PM PDT by tom paine 2
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To: BlueStateRightist

Voting democrat is short-term thinking but results in long-term misery.


5 posted on 04/18/2013 1:38:23 PM PDT by 353FMG ( I do not indicate whether I am serious or sarcastic -- I respect FReepers too much.)
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To: Hojczyk

WHAT GOOD IS A NEST EGHG THAT EARNS LESS THAN 1% INTEREST.

You will eat up the principle in 3 years and be on welfare after you sell your house to a reverse mortgager.


6 posted on 04/18/2013 1:38:58 PM PDT by Venturer
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To: Venturer

Duke Power stock pays a 4.5% dividend as does AT&T and AEP.


7 posted on 04/18/2013 1:39:50 PM PDT by AppyPappy (You never see a massacre at a gun show.)
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To: Hojczyk
Plus, you need to make sure you have the right kinds of insurance in place. “You need also to protect against large, unexpected claims,” he wrote. And that means, having disability, life, and health insurance.

If you are single, what do you need a life insurance policy for? To settle any outstanding debts? AD&D (dismemberment without death)?

8 posted on 04/18/2013 1:40:47 PM PDT by a fool in paradise (America 2013 - STUCK ON STUPID)
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To: Hojczyk

Who cares? If you scream loud enough, the government will give you more subsidies — food stamps, free medical, free transportation. And they’ll pressure your bank to let you stay in your house without paying the mortgage if you still have one. And how will Uncle Sam pay for it? By confiscating the 401Ks of those poor suckers who actually did save for retirement. “Ant and Grasshopper” in reverse.


9 posted on 04/18/2013 1:41:35 PM PDT by Opinionated Blowhard ("When the people find they can vote themselves money, that will herald the end of the republic.")
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To: Hojczyk
No problem, Obama's Death Panels will take care of this.

You may be able to settle your debt to the government if you have organs healthy enough to be harvested.

10 posted on 04/18/2013 1:45:07 PM PDT by Navy Patriot (Join the Democrats, it's not Fascism when WE do it, and the Constitution and law mean what WE say.)
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To: Venturer

In addition, why save - say - a half million dollars if that will only last you a year or two in the future economic collapse.

And don’t think that Obama and the libs weren’t paying attention to the money grab in Cyprus.

Its called redistribution. And thats been a part of Obama’s agenda since forever.


11 posted on 04/18/2013 1:45:27 PM PDT by Responsibility2nd (NO LIBS. This Means Liberals and (L)libertarians! Same Thing. NO LIBS!!)
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To: tom paine 2

or they put all their savings into their home which was excluded from this.


12 posted on 04/18/2013 1:53:09 PM PDT by TexasFreeper2009 (Obama lied .. the economy died.)
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To: Venturer

The low, low interest rates have not helped savings accounts.

15 years ago a money market account was earning a ‘low-moderate’ 8%.

8 years ago I put some of my savings into CD’s. They were only earning 5%. On renewal, 4%. Next renewal 3%. Next renewal was 1%, which was less than my money market was earning, so I returned the funds to the money market.

Currently, that money market is earning 0.75%.

==

I have noticed recently that my weekly grocery bill is running between $50 and $60. About 4 years ago, it was between $30 and $45. And 4 years before than, it was running about $25 to $30.

==

Right now, the government is benefitting greatly from the low interest due to the size of the National Debt.

Those low rates are unsustainable. SuperInflation and rising interest rates will happen. When they do, prices will skyrocket.


13 posted on 04/18/2013 1:56:05 PM PDT by TomGuy
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To: Hojczyk
It is damn hard for me to understand how single people can save less money than married people. I probably saved about 40 cents of every dollar I took home when I was single. I'm lucky if I can save 5 cents of every dollar since.

And that considers fairly substantial salary increases because I had the luxury of working jobs which didn't pay very well but were fun when I was single.

14 posted on 04/18/2013 2:00:19 PM PDT by Vigilanteman (Obama: Fake black man. Fake Messiah. Fake American. How many fakes can you fit in one Zer0?)
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To: Hojczyk
It is damn hard for me to understand how single people can save less money than married people. I probably saved about 40 cents of every dollar I took home when I was single. I'm lucky if I can save 5 cents of every dollar since.

And that considers fairly substantial salary increases because I had the luxury of working jobs which didn't pay very well but were fun when I was single.

15 posted on 04/18/2013 2:00:35 PM PDT by Vigilanteman (Obama: Fake black man. Fake Messiah. Fake American. How many fakes can you fit in one Zer0?)
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To: Hojczyk

Depends. One person supporting 2-5 people and then saving for retirement to support two people in retirement is harder than one single saving for retirement.


16 posted on 04/18/2013 2:00:41 PM PDT by plain talk
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To: Hojczyk

I tell my kids all the time God created the concept of family for a reason - it is the best social, medical, old-age, welfare and retirement insurance that exists, or will ever exist.


17 posted on 04/18/2013 2:06:45 PM PDT by PGR88
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To: Hojczyk

Depends. One person supporting 2-5 people and then saving for retirement to support two people in retirement is harder than one single saving for retirement.


18 posted on 04/18/2013 2:19:14 PM PDT by plain talk
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To: Hojczyk

Is this why queers want to marry? Will it instantaneously make them financially responsible? Inquiring minds want to know.


19 posted on 04/18/2013 2:35:57 PM PDT by RetiredTexasVet (The Team: Progressives, Margret Sanger, Josef Mengele and the Butcher of Philadelphia)
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To: Hojczyk

Who has money for retirement? The govt and Obama has taken it all. They find out you have an extra $10.00 laying around they pass another stupid bill or law to take it away from you.


20 posted on 04/18/2013 2:37:10 PM PDT by coconut47
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To: Venturer
You will eat up the principle in 3 years and be on welfare after you sell your house to a reverse mortgager.

A brother-in-law was telling me a few days ago, about a friend whose dad needed assisted living caretakers. The family got him a reverse mortgage on his home, hoping the money would take care of him for years to come. The money lasted a couple years paying for caretakers. Now they have nothing.

21 posted on 04/18/2013 2:37:12 PM PDT by roadcat
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To: Hojczyk
In fact, the median married household had in 2008 nearly 10 times more saved up for retirement than the median single-person household, $111,600 vs. $12,500.

Late last year I was in line behind two gentlemen who appeared to be in their mid-60's. One was boasting to the other that he just retired, and was putting his nest egg of $6,000 that week into buying Apple stock (at the time over $600 a share). He figured the rising value would take care of him for the future. I shuddered at the thought, because $6G is nothing to me but that's all he had. Less than six months later Apple dropped to $400 a share. Hope he didn't have a heart attack, losing a third of his life savings. Stock investing is gambling! For the young, not old geezers unless you diversify into different assets.

22 posted on 04/18/2013 2:48:09 PM PDT by roadcat
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To: TomGuy

When the interest rates go up, Hyper-inflation will set in wiping all savings out.

The Government knows it. They bought 1.9 Billion dollars in bullets to solve the problem.


23 posted on 04/18/2013 3:05:03 PM PDT by Venturer
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To: Hojczyk

Of course when you get divorced, you split up your grubstake 50/50, then the guy has to pay alimony and child support.

For twenty years of my life, from age 28 to 38, for every dollar raise, after tax, alimony, and child support, I got to keep 5 cents! Kinda hard to develop another grubstake for myself!


24 posted on 04/18/2013 3:05:49 PM PDT by Noob1999 (Loose Lips, Sink Ships)
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To: Hojczyk

If only we had “means testing”, then all us knuckleheads who lived frugal lives and saved for retirement - - while passing up the fancy cars, gourmet restaurants, and lavish vacations - - could sacrifice our social security so that people who never save a nickel and maxed out their credit cards and lived like movie stars can have comfortable retirements.


25 posted on 04/18/2013 3:15:21 PM PDT by Lancey Howard
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To: roadcat

One day my old company’s stock price dropped from a high of about $68 to close one day around $10. That day a lot of people learned the wisdom of considering 401K investments outside of company stock.


26 posted on 04/18/2013 3:16:46 PM PDT by ken in texas (I was taught to respect my elders but it keeps getting harder to find any.)
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To: Hojczyk
In fact, the median married household had in 2008 nearly 10 times more saved up for retirement than the median single-person household, $111,600 vs. $12,500.

Most income tax breaks are specifically designed to benefit married couples with kids.

Single people who make a middle-class income and with no kids get taxed the maximum amount and it's really hard to save anything when approximately 50% of your income is instantly grabbed for federal (25%) and state income tax (8%), social security and medicare taxes (7%), states sales tax (6%), gasoline taxes, property taxes, excise taxes, etc.

I've seen newly graduated single people employed on their first real job go into "sticker shock" when they see how much is withheld from their paycheck. A few have cried.

27 posted on 04/18/2013 3:48:50 PM PDT by Victoria_R (Believers in VERY small government: Count Mountjoy/Benter in 2012!!!)
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To: tom paine 2

‘If a couple has only saved 125K by their late 60’s they must have been living way above their means for a long time’

...........

Or lived on a low income, or had lots of kids, or gave heavily to church and charity, or had lots of medical/dental bills. The narrative is not always just option a or b.


28 posted on 04/18/2013 3:52:24 PM PDT by lurk
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To: Hojczyk

“I’m eatin’ right and I’m livin’ good.
Doin’ everything I said I would.
I bet you never thought I’d really go.
I’d never get as far as Mexico.”

http://www.youtube.com/watch?v=t6_qu1ODjEg


29 posted on 04/18/2013 4:39:21 PM PDT by VerySadAmerican
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To: ken in texas

My wife’s brother-in-law received a lot in stock options to supplement low pay at his telecom company, that he couldn’t cash in until being there so many years. At one point worth almost $400,000. Then the value of the company plummeted and the stock was worthless. Worked his butt off for nothing. Now working elsewhere. Tough to be in your fifties and start over trying to save money, but he’s happy. New job is in Hawaii, and no snow or cold weather.


30 posted on 04/18/2013 4:59:30 PM PDT by roadcat
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To: ken in texas
One day my old company’s stock price dropped from a high of about $68 to close one day around $10. That day a lot of people learned the wisdom of considering 401K investments outside of company stock.

Recent events in Cyprus disabuse us of the idea that our 401k accounts are anything but future revenue for the gov't.

31 posted on 04/18/2013 5:34:41 PM PDT by IncPen (Mayor Bloomberg doesn't fear government tyranny; he is government tyranny.)
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To: tom paine 2

You just figured out we are a debtor nations, head to toe?

Half the people I know live hand to mouth and could not get by without their next month’s paycheck.

Meanwhile, the government and inflation continues to take more and more of that check.


32 posted on 04/19/2013 9:25:13 AM PDT by Freedom_Is_Not_Free (Free goodies for all -- Freedom for none.)
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To: Victoria_R

I finally bought a house post-bubble and have a nice modest tax write off. My ONLY tax write off.

Single people get slaughtered on taxes, unless they are in the 47% who pay no taxes or on the dole.


33 posted on 04/19/2013 9:30:26 AM PDT by Freedom_Is_Not_Free (Free goodies for all -- Freedom for none.)
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To: Victoria_R

Which is not to say that married couples don’t get hit hard by taxes as well.

I have a friend who both he and his wife work as contractors and both pay their full Social Security amount of 15% or so, so they are getting killed from that.


34 posted on 04/19/2013 9:32:26 AM PDT by Freedom_Is_Not_Free (Free goodies for all -- Freedom for none.)
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